City of Miami Gardens 21-052 Agenda Cover Memo Meeting: City Council - Apr 14 2021 Department Sponsored By Mayor and City Council Mayor Rodney Harris Agenda Item Title A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MIAMI GARDENS, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN MEMORANDUM UNDERSTANDINGWITHHARDSTADIUM FLORIDASOUTHANDOF ROCK MOTORSPORTS, LLC, RELATING TO CERTAIN CONDITIONS APPLICABLE TO UPCOMING FORMULA 1 EVENTS AT HARD ROCK STADIUM OUTLINED HEREIN; PROVIDING FOR THE ADOPTION OF REPRESENTATIONS; PROVIDING FOR AN EFFECTIVE DATE. Staff Summary The City of Miami Gardens (the “City”) is the third largest city in Miami-Dade County with approximately 113,000 residents. The City is the proud home of the Hard Rock Stadium sports complex (the “Stadium”), which hosts Miami Dolphins and University of Miami football, the Orange Blossom Classic, Jazz in the Gardens, Rolling Loud, the Orange Bowl and the Miami Open. Since 2015, approximately $750,000,000 in private funds have been invested into the Stadium by Stephen M. Ross to modernize avenuetheasgloba l entertainmentdestinationattractworldto - class events, including Super Bowls, College Football championship games, and World Cup soccer matches to the City and South Florida. This investment has generated economic benefits for the City in the form of increased spending at local businesses, and large-scale infrastructure improvements, including pedestrian bridges to improve traffic flow and the provision of a setback needed for the future development of the North Corridor transit project. The City and South Florida Stadium LLC d/b/a Hard Rock Stadium (“HRS”) have a partnering historyof highon - impact benefittinginitiativescommunitythe City's residents and businesses, including education specialty programming (e.g., hospitality and sports management), mentorship programming (e.g., CityYear at Carol City and Norland High Schools), direct impact programs (e.g., Miami Dolphins Food Relief Program), and the hosting of community events at the Stadium (e.g., the Dolphins Cancer Challenge and the 5,000 Role Models Police & Youth Conference). The City wishes to continue its partnership and cooperation with HRS and its affiliate, South Florida Motorsports, LLC (“Promoter”), in hosting a world-class annual motor vehicle Formula 1 Grand Prix annually at and around the Stadium (collectively, the “Event”) in the City in a manner that provides substantial economic and community that directly support City residents benefits and businesses, including defined opportunities for local residents and locally-owned businesses to participate in the Event and promote the City as the first majority African-American city to host a Formula 1 race of the 23 cities around the world that host a Formula 1 Grand Prix, as currently sanctioned by the Federation Internationale de l'Automobile. The City also wishes to ensure that HRS and the Promoter will make certain commitments regarding (A) Event operations, including with respect to track design, noise mitigation, air quality monitoring, and racing hours that minimize any disruptions to local schools and neighborhoods; and (B) ensuring that the substantial regional economic benefits generated by the Event include direct community benefits for the residents and businesses of the City. The parties intend to enter into a Memorandum of Understanding (“MOU”) to provide for the City’s cooperation with, and support of, HRS and the Promoter in connection with the preparation for, and execution of, the Event, including expeditious issuance of all necessary permits, consents and other approvals deemed necessary to effectuate the Event and its related activities in the City beginning with the first Event (currently contemplated to take place in 2022). The MOU between the parties will provide as follows: 1. Race Planning & Operations. In order to mitigate disruption to the local leading up to and during thecommunityEvent, the following mitigation measures shall be implemented by the City and the Promoter: a. The Event may take place at and around the Stadium, but no portion of the proposed track shall utilize Northwest 199th Street or N.W. 27th Avenue; b. No race shall start: (a) prior to 2:30pm (ET) on any weekday on which public schools are in session prior to 2:30pm (ET); or (b) after sunset in the City on any day; c. Noise mitigation barriers of industry quality shall be erected on the north side of any section of the track adjacent to the Snake Creek Canal to protect the City's residents adjacent to Snake Creek Canal; d. The Promoter shall provide for industry standard air quality and noise monitoring during the Event; e. The Event shall include variable message signage around the Stadium alerting residents to the dates of the Event and any applicable road closures, as well as a dedicated shuttle bus program designed to efficiently transport rideshare customers to an off-site hub to help reduce the number of rideshare vehicles around the Stadium after the Event; and f. Promoter and HRS shall be allowed to commence demolition and site work, subject to ongoing inspection by the City, as the construction for the Event facilities are beingplans reviewed, processed, and approved by the City. g. To ensure effective coordination with City resources, the Promoter and HRS shall; (a) operate a multi-jurisdictional command center at the Stadium during each event designed to coordinate communications and operations amongst applicable City, County, and State resources; and (b) meet and confer with the City Manager and staff not more than thirty followingEventdayseachdiscus (30) to City’s thes recap and communityprogram,benefitsasas egressingress,andthe well management plans, as well as the results of the required air/noise monitoring and mutually-agreed upon measures that could be taken to improve each of the foregoing. 2. Community Benefits. In order to ensure a lasting and meaningful positive residentsbusinessesCityconnectionfor Event,impactwithin the and following community benefits shall be provided by the Promoter: a. The Promoter shall provide Five Million Dollars ($5,000,000.00) of funding for community benefits programs to be administered by the City with such funding to be provided as follows: (1) One Million Dollars ($1,000,000) shall be funded not later than thirty (30) days followingin connection with the first Event with fifty (50%) due not later than thirty (30) days prior to the first Event and fifty (50%) due not later than thirty days after(30)firstthe Event Hundredand(2)FourForty ; -Four Thousand Four Hundred Forty-Four and 44/100 Dollars ($444,444.44) shall be funded in the same manner (i.e. 50% thirty days prior to each Event and 50% not later than thirty days after each Event within thirty (30) days following for each of the next nine (9) subsequent annual Events (it being understood that any prepayments shall be credited towards the following year’s Promoter financial commitment if the applicable Event is cancelled for any reason, such as force majeure), acknowledgesCitytheagrees (andthatan and dollary amounts provided by Event corporate sponsors and/or Formula 1 dedicated directly to the City of Miami Gardens for Miami Gardens residents or businesses will count against this $5,000,000.00 commitment, while any such amounts dedicated to third parties (i.e., other than the City) for the benefit of Miami Gardens residents or business will count against this commitment only if mutually agreed upon by the parties) b. The Promoter shall ensure that Formula 1 implements, through the City’s Parks and Recreation Department, the “F1 in Schools” STEM program (or successor STEM program) in the City at no cost to the City, for both elementary, middle and high school students as well as behind- learning tours for studentsthe-scenes and interaction with t he motorsports teams at the Event; c. The Promoter shall provide at least five (5) paid Event internships to high school and/or college students and five (5) paid internships for graduate students attending schools located in the City in connection with each Event, with such internships to be structured in a way that and empowers internship prepares participants to pursue full -time employment opportunities with the provider; d. The Promoter shall create and administer a program that allows local restaurants t participatein o thefoodandof non-alcoholic sale beverages, especially authentic and local products, at the Event, without a buyout fee; e. The Promoter shall provide for an allotment of discounted tickets to be made available for the Event for City residents; f. HRS shall extend the Jazz in the Gardens agreement entered into by and between the City and HRS by a period of ten (10) years to be coterminous the Event host with agreement Promoter’s to on substantiallyexecutingterms.similarto Memorandum the of Prior Understanding, the parties will negotiate in good faith with respect to sponsorships, vendors, parking and other terms related to Jazz in the Gardens; and g. Said MOU shall continue in effect for so long as Promoter and HRS continue to host Formula 1 racing at the Stadium. Fiscal Impact See the above "Community Benefits" for complete details. Recommended Action That the City Council adopt the attached Resolution Attachments Resolution 2021 - Hard Rock Stadium Formula 1 RESOLUTION NO. 2021____ 2 3 4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 5 MIAMI GARDENS, FLORIDA, AUTHORIZING THE CITY 6 MANAGER TO EXECUTE AN MEMORANDUM OF 7 UNDERSTANDING WITH HARD ROCK STADIUM AND SOUTH 8 FLORIDA MOTORSPORTS,